Articles

What Every CEO Should Know about Equipment Financing

CEOs are increasingly challenged to secure capital to foster their companies' growth. Although equity is the main source of sustenance for companies, equipment financing is a layer of capital that is becoming increasingly important. Equipment financing is a way of leveraging equity to extend a company's cash runway, which buys time and enhances value.

Factors to Consider When Considering Leasing Equipment

Looking to equip your business? Whether you need production machinery, computers, desks, or other equipment; you want to make cost effective decisions. Why not consider leasing equipment instead of buying it? According to the Equipment Leasing & Finance Association, over 75% of businesses lease equipment.

Bankers' New Lease on Life

Somewhere down in Louisiana’s bayou country, there’s a tug-barge with Talmer Bancorp’s name on it. Not literally—you won’t see the M.V. Talmerbank afloat. But all the same, the barge is owned by the company’s leasing operation. Perhaps surprisingly, the $4.9 billion-assets Talmer Bancorp is based in Troy, Mich., a far cry from the bayou. Talmer is among those community banks that have expanded their business finance activities by adding leasing.

Vendor Finance Isn't Complicated

Vendors help manufacturers sell more by conveniently positioning a simple financing solution at the time and place of purchase. Captives play a significant role. They dominate certain key markets like information technology, construction equipment, trucks and trailers, office and printing equipment, and medical devices.

Taxing Considerations

Operating and capital leases are two types of treatments of equipment leases. The type of lease not only determines how the lease is is booked, it also determines the tax benefits a company will derive from the lease. While the company has some control over how a lease is classified, the greater emphasis is on the Federal Accounting Standards Advisory Board (FASAB) accounting regulations.

The Medical Equipment Marketplace

Until now, figuring out how to best finance medical equipment has proven to be an enormous challenge for medical practices and medical facilities. Leasing is now the solution which is increasing in usage, offering medical offices and facilities fast and easy access to the medical equipment they need.